Banks Own Vast Stocks of Luxury Homes
The banking system in the USA, Spain, and the UAE are now the largest owners of property in those countries. This does not bode well for the luxury real estate market, and although the banks are artificially keeping prices of these luxury homes for sale artificially inflated, this must surely backfire at some point.The Spanish banks are holding some 2 million piece of property and the only reason they are able to do so is because ethe ECB pumped 60 billion Euros into the system. How much more will be needed before this inventory can sensibly be sold? Three years? Five. Time will tell, bt this plan could backfire with the gap between the rich and the poor becoming too large.
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